Catastrophic Microinsurance in Central America

Proyecto terminado

Central America is a natural disasters prone region where large vulnerable populations suffer over-proportionately from increasing frequency and impact of climate change events, as traditional disaster coping mechanisms are eroding with growing environmental pressures and rising urbanisation. The public-private development partnership with Swiss Re, FOMIN, and KfW’s Climate Adaptation Fund supports MiCRO in strengthening the disaster resilience of at least 80’000 vulnerable households by 30.9.2016.

Región/País Tema Período Presupuesto
América Central
Empleo y desarrollo económico
Cambio climático y medio ambiente
Informal banking & insurance
Reducción de riesgos de catástrofes
Environmental policy
01.03.2013 - 31.03.2022
CHF  6’700’000

Insurance can be an effective risk management tool - combined with disaster risk reduction (DRR) and financial education - for vulnerable households to recover and resume their productive activities when struck by natural disasters. The faster they receive insurance pay-outs, the less they are forced - as in the case of slow and uncertain relief operations - to revert to negative coping strategies, such as selling off assets at distress, depleting their savings, and becoming over-indebted to money-lenders.


Reduction of vulnerability to natural disasters (i.e. hurricanes, earthquakes, and excess rainfall) of low-income households in Central America thereby reducing their risk of falling into a poverty trap, if hit by natural disasters.

Grupos destinarios
  • The ultimate direct beneficiaries are vulnerable low-income households who are clients of the 2-3 pilot MFIs. These clients are micro or small (mostly informal) entrepreneurs who have borrowed for their business activities being the basis for the livelihood of their households.
  • Direct beneficiaries are the 2-3 pilot MFIs, 2-3 first insurers, and MiCRO.
Efectos a medio plazo
  • Institutions in target areas offer and sell effective, relevant and efficient quality of MiCRO’s catastrophe insurance products to at least 80’000 low-income MFI clients (outreach).
  • Low-income households use less negative coping strategies (if struck by natural disasters) due to catastrophe insurance coverage.
  • Vulnerable low-income households are less exposed to natural disaster risks due to adopted DRR measures.

Resultados de las fases anteriores:  

  • Establishing the risk mapping and risk modelling systems indicating the likely operational and future commercial feasibility of MiCRO’s catastrophe insurance products in Central America.
  • Lessons learnt from the difficulties encountered by Fonkoze in Haiti in offering catastrophe insurance to its active borrowers.
  • Redcamif is committed to partner as Third Party Insurance Administrator (i.e. offering insurance management ser-vices, notably claims management & settlement).

Dirección / Officina Federal responsable COSUDE
Crédito Cooperación al desarrollo
Contrapartes del proyecto Contraparte del contrato
Sector privado
  • Sector privado extranjero Sur/Este
  • MiCRO is the project implementation partner, being a licensed re-insurance company registered in Barbados. Swiss Re bringing in the required (re)insurance expertise and running MiCRO through seconded CEO since 8/2013. KfW’s Climate Insurance Fund structuring SDC’s ‘capitalisation’ funds in MiCRO. The Climate Insurance Fund will nominate a Board member for MiCRO. FOMIN co-funding the “TA & Capacity Building” component and bringing in its network with MFIs and governments.

Presupuesto Fase en curso Presupuesto suizo CHF    6’700’000 Presupuesto actual suizo ya emitido CHF    6’715’492
Fases del proyecto

Fase 1 01.03.2013 - 31.03.2022   (Completed)